GI-2024-46-reg1: Regulations Amending the Financial Consumer Protection Framework Regulations

All 80 federally regulated banks in Canada — including the Big Six and 30 authorized foreign banks — are affected, with the Big Six bearing roughly 97% of the total cost impact. Banks are expected to lose an estimated $677 million per year in annualized NSF fee revenue, which represents about 1% of industry net income before taxes. Each bank must also invest in IT system updates to implement the alert system and fee-tracking logic, at an estimated one-time cost of around $40,000 per institution in year one (roughly $3.2 million industry-wide), plus about $1,400 per bank annually for ongoing disclosure reporting. Banks may attempt to offset lost NSF revenue by raising account maintenance or other service fees, and some customers may also cancel overdraft protection now that NSF fees are cheaper, creating additional indirect revenue pressure.